Duties Amendment Act 2007 (ACT)

Duties Amendment Act 2007

A2007-38

Contents

Page

1. Name of Act  2

2. Commencement  2

3. Legislation amended  2

4. Imposition of duty on dutiable transactions that are not transfers

   
   

   Section 8, table 8, item 4  2

5. Dutiable property

   
   

   New section 10 (1) (da) and (db)  3

6. New section 10 (2A)  3

7. No double duty

   
   

   New section 17 (6A) and (6B)  4

8. What is the dutiable value of dutiable property?

   
   

   New section 20 (2A)  4

9. Application of ch 5 to certain arrangements

   
   

   Section 421 (2) (b)  4

10. Section 421 (3)  5

11. Dictionary, definition of long-term lease  5

Duties Amendment Act 2007

A2007-38

An Act to amend the Duties Act 1999

The Legislative Assembly for the Australian Capital Territory enacts as follows:

1. Name of Act

   This Act is the Duties Amendment Act 2007.

2. Commencement

   This Act commences on the day after its notification day.

   NoteThe naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

3. Legislation amended

   This Act amends the Duties Act 1999.

4. Imposition of duty on dutiable transactions that are not transfers
   Section 8, table 8, item 4

   substitute

4 grant of a long-term lease (a)    for a long-term lease mentioned in section 10 (1) (d) or (da)—the leasehold interest; and (b)    for a long-term lease mentioned in section 10 (1) (db)—the extension or further extension mentioned in that section the lessor (a)    for a long-term lease mentioned in section 10 (1) (d) or (da)—when the lease is granted; and (b)  for a long-term lease mentioned in section 10 (1) (db)—when the lease is extended or further extended as mentioned in that section

1. Dutiable property
   New section 10 (1) (da) and (db)

   insert

   (da)a lease (also a long term lease) of land that is granted to a person for a term of 30 years or less if—

   (i)the lease is granted on the surrender of a previous lease of the land granted to the person; and

   (ii)the term of the lease, taken together with—

   (A)the term for which the person held the previous lease; and

   (B)the term (if any) for which the person held a lease of the land under any earlier surrendered lease;

   would result in the person holding a lease of the land for a continuous period of longer than 30 years;

   (db)a lease (also a long term lease) that is granted for an initial term of 30 years or less if—

   (i)the lease is subsequently extended, or further extended; and

   (ii)the term as extended, or further extended, is longer than 30 years;

2. New section 10 (2A)

   insert

   (2A)For subsection (1) (da), a lease is granted to, or held or surrendered by, a person if it is granted to, or held or surrendered by, the person or an associated person.

3. No double duty
   New section 17 (6A) and (6B)

   insert

   (6A)The duty charged by this chapter on the grant of a long-term lease mentioned in section 10 (1) (da) must be reduced by the amount (if any) of duty paid under chapter 5 on the lease instrument that evidenced or effected the previous surrendered lease or any earlier surrendered lease mentioned in that section.

   (6B)The duty charged by this chapter on the grant of a long-term lease mentioned in section 10 (1) (db) must be reduced by the amount (if any) of duty paid under chapter 5 on the lease instrument that evidenced or effected the lease that was extended or further extended as mentioned in that section.

4. What is the dutiable value of dutiable property?
   New section 20 (2A)

   insert

   (2A)However, if the land the subject of a long-term lease mentioned in section 10 (1) (da) is not identical to the land the subject of the previous lease and any earlier surrendered lease, land in subsection (1) (b) (i) means the part of the land the person would hold continuously for longer than 30 years.

5. Application of ch 5 to certain arrangements
   Section 421 (2) (b)

   omit

   another arrangement was made

   substitute

   an option was granted, or another arrangement was made,

6. Section 421 (3)

   after

   lease the property

   insert

   , or substantially the same property,

7. Dictionary, definition of long-term lease

   substitute

   long-term lease—see section 10 (1) (d), (da) and (db).

Endnotes

1. Presentation speech

   Presentation speech made in the Legislative Assembly on 18 October 2007.

2. Notification

   Notified under the Legislation Act on 4 December 2007.

3. Republications of amended laws

   For the latest republication of amended laws, see certify that the above is a true copy of the Duties Amendment Bill 2007, which was passed by the Legislative Assembly on 20 November 2007.

   Clerk of the Legislative Assembly

   © Australian Capital Territory 2007